en.Wedoany.com Reported - A report released by Grant Thornton India shows that in the quarter from January to March 2026, India's real estate transaction value fell 63% quarter-on-quarter to $763 million, with a total of 32 real estate transactions, compared to $2.083 billion in the previous quarter. The report states that although the number of real estate transactions increased from 26 in Q4 2025 to 32 in Q1 2026, also rising 14% year-on-year, the total transaction value declined significantly from the previous quarter, marking one of the lowest quarterly real estate transaction values since Q4 2023.
The report points out that the divergence between a rise in the number of real estate transactions and a decline in value suggests the market is shifting towards small and medium-sized deals. Charn Chakravarty, a global real estate investor and capital strategist, noted that while the transaction volume in Q1 2026 indicates sustained resilience in India's real estate sector, the sharp drop in overall transaction value reflects a notable shift in investor behavior from large-scale, opportunistic bets to more prudent middle-market deals.
In terms of M&A activity, 19 real estate transactions were completed in this quarter, valued at $305 million. The largest M&A deal was RSVM Hospitality Pvt Ltd's acquisition of an 18.6-acre land parcel in Thane, Mumbai, from the Netarwala Group for $55 million. Private equity and venture capital accounted for 13 real estate transactions, valued at $458 million, marking the highest quarterly transaction volume in the past year, although the total value fell 71% quarter-on-quarter. The average private equity deal size decreased from $80 million in Q4 2025 to $23.8 million in Q1 2026.
Commercial development remains the most favored sector, contributing 42% of M&A deal volume and 78% of private equity transaction value. The number of residential development deals increased from 1 in the previous quarter to 6, valued at approximately $178 million. The consulting and services sector recorded 2 real estate transactions with a total value of $8 million.
Shabala Singh, Partner and Real Estate Sector Leader at Grant Thornton India, noted that Q1 2026 reflects a steady and prudent start for India's real estate sector, with improved transaction volumes but a pullback in overall value due to the absence of large-scale deals. "This quarter saw a clear shift towards mid-sized and income-generating assets, with domestic activity continuing to dominate and private equity remaining a key source of capital," Singh said. She also stated: "Investment trends indicate a strong preference among investors for commercial assets, particularly office and retail platforms, driven by income visibility and stable cash flows."
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